Emerald Resources has officially sold its Southern Cross tenements to Golden Horse Minerals, a gold explorer with a large tenure across Western Australia.
The acquired tenements, known as the Southern Cross gold project, cover a 360km² area and comprises 11 exploration leases, four mining leases, and a prospecting lease.
Southern Cross includes the historical Hopes Hill and Greenmount gold mines, which were last mined in 1990s and early 1900s respectively.
Historical drilling at Hopes Hill demonstrates potential for high-grade gold ounces and possible open pit extensions, with minimal confirmational drilling required to establish a JORC compliant resource.
There is also potential for high-grade open pit and underground works at Greenmount, with extensions along the strike. The acquired tenements at Hopes Hill and Greenmount are also adjacent or close to existing Golden Horse tenements.
The acquisition follows Golden Horse launching an initial public offering (IPO) to raise $18 million. The IPO closed early and was oversubscribed.
The funds will be used to leverage its position in the Southern Cross Greenstone Belt to accelerate advanced and untapped exploration opportunities, expanding Golden Horse’s gold asset portfolio.
“We have been overwhelmed by the investor support, and it’s a fantastic endorsement of our company, its new acquisitions and our people,” Golden Horse managing director and chief executive officer Nicholas Anderson said.
“An oversubscribed offer is a significant milestone for Golden Horse as we position ourselves to unlock the immense potential of the Southern Cross region. We are looking forward to finalising our acquisitions and the listing process with ASX.”
To acquire Southern Cross, Golden Horse issued 32 million of its shares to Emerald at a deemed issue price of $0.25 per share.
As a result, Emerald is now Golden Horse’s largest shareholder, holding a 20.5 per cent stake in the company. Emerald also has the option to receive further deferred consideration of up to $3 million in Golden Horse shares, subject to milestone achievements.
“Emerald shareholders maintain exposure to the Southern Cross gold project through Emerald’s shareholding in Golden Horse as well as gaining exposure to the advanced and untapped exploration opportunities presented by Golden Horse’s surrounding tenure in the Southern Cross Greenstone Belt and (NT Minerals’) Redbank copper project in the Northern Territory,” Emerald said.
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